What is Software Risk and Software Risk Management?
When there is a possibility of loss in the software development process then we call is software risk. Production cost increase, poor quality software, unable to complete the project on time, are just some of the losses that can happen. The existence of software risk is due to the fact that there are many known and unknown things that you are not able to include in the project plan. There are internal risks and external risks where internal risks are those within the control of the project manager and external risks are those beyond the project manager’s control. When carrying out risk management it is important to identify the risk, reduce its impact, reduce the likelihood of risk, and monitoring the risk.
There are many possible causes of risk that a project manager has to deal with.
There are risks that are facts known to the team and the entire project. An example of this would be not having enough number of developers that can delay project delivery. The project management plan considers these risks.
Some know risks can be unknown in the sense that the project team doesn’t know if these risks exist in the project. An example of this is not being able to get the client’s requirement properly due to poor communication. So while you know that this can happen, you don’t know if your client has indeed given all the information properly or not.
Some risks are completely unknown. In these types of risks, technology is usually involved which you have no knowledge about but which your client wants you to work on.
In software risk management, risk is quantified. What is included in this is having a precise description of risks even that can occur in the project, defining a risk probability which explains the chances for the risk to occur, defining how much loss a risk can cause and defining the liability potential of the risk.
Studying previous projects can help identify risks that you may be exposed to. It is important to check all areas that are vulnerable to risk. To examine all essential areas, a flowchart will help. Identify the known unknowns that can affect the project. Evaluating decisions taken related to different factors is important. In this way, you define the processes important for risk identification.
It is important to identify and categorize risk in software risk analysis. Its impact is then analyzed. This is followed by software risk planning. Defining preventive measures that would lower down the likelihood of risks, defining measures that would reduce the impact when a risk happens, and constant monitoring of processes in order to identify risks early, are involved in software risk planning.
Software risk monitoring is integrated into project activities and regular checks are conducted on top risks.